Sony: Time Was Right for PS3 Price Cut

Today, Sony dropped the price of the base 160GB PlayStation 3 console from $299 to $249 globally. Additionally, the 320GB unit saw its price cut from $349 to $299.

John Koller, director of Hardware Marketing at SCEA, said he believes with Sony's lineup of titles coming out later this year, including Uncharted 3 and Resistance 3, that now was the right time to drop the price of the console.

"We knew the time was right from a market standpoint to drop the price to $249," he told IGN in a phone interview. "It's a really good time to make the announcement and we expect a lot of traction."

When asked if Sony ever considered reducing the price by $100, Koller said the company never targeted knocking off more than $50 from the start and stated it will continue to profit on each console sold with this new price introduction.

"It is still profitable," he said. "We're not going into the red."

Koller explained that introducing a hardware price cut is not a simple as it sounds, either. It can take months if not years' worth of planning and requires working closely with retailer partners and other departments within Sony.

"It is a longer process than most people think," he explained. "It's not done in reaction to short term market changes. We don't look at this on a week to week basis and decide to drop price. There's a longer-term business plan that's place.

"We've had this price drop in mind for over a year."

In addition to attracting casual gamers, Sony hopes the new price point also grows its core audiences by gaining the attention of Microsoft and Nintendo fans.

"We're opening our arms for the Xbox 360 and Wii owners to come over," Koller said. "There's a real opportunity for those consumers to be able to play, what we view, are the best games in the industry on the PS3 this fall.

"There's a significant number of Xbox 360 and Wii owners who would like that second console and want to have the opportunity to play these exclusive games and content experiences, and this new price point allows them to do that."